What is the Medicare Levy Surcharge and do I have to pay it?
If you are an Australian tax-paying resident and earn over $93,000 for singles or over $186,000 as a family (including couples and single-parents) and do not currently have private hospital cover, you may be subject to the Medicare Levy Surcharge (MLS). The MLS is a Federal Government initiative and is an extra 1% to 1.5% in tax on top of the normal 2% Medicare Levy we all have to pay. In other words, you may be paying up to $900 more in tax for every year you do not have the right level of Hospital Cover.
To avoid paying the Medicare Levy Surcharge, join any AAMI Health Insurance Hospital Cover before 1 July and maintain your Hospital Cover for the full financial year.